Trump’s Trade War Against China: A headless decision resulting in catastrophic consequences for the US Economy II

Dr. Syed Mehboob

Senior Business and Political Analyst

http//: http://www.thenewslark.com

email:drmehboob.thenewslark@gmail.com

Trump’s Trade war has very negative and catastrophic impacts on business and investment. Chief Executive Officers of many big companies reduced their investments, and Wall Street Banks have cut their year-end targets for the S&P 500.  Bank of America’s latest global fund manager survey showed the largest number of global investors on record intending to decrease their holdings of U.S. stocks.  The Trump administration’s aggressive and thoughtless policies have raised concerns about US economic growth and caused global investors to rethink their allocation to US assets. In January, DeepSeek’s low-cost, ChatGPT-like artificial intelligence model caught Silicon Valley by surprise and challenged the narrative that the US had outright dominance in Artificial Intelligence (AI). The latest Survey from the American Association of Individual Investors showed that for the past eight weeks, more than 50% of respondents have been bearish on the US stock market.

Individual mistakes might be neglected, but crimes are punishable. The American so-called war against terrorism caused millions of deaths, and its unjustified, barbaric, and inhuman support for Israel allowed it to commit the most organized, planned genocide of Gazans, including 18,000 children, 15000 women, 8,000 elderly men, and some 10000 others. The blood of these innocent children and women is raising the consciousness of the peace lovers of the world. The United States used a veto in favour of Israel first time in 1972, and since then, in 51 years in the United Nations Security Council (UNSC), it has used veto 45 times in favour of Israel to save it. Since October 2023, America has used veto five times in favour of Israel. Similarly, in the United Nations General Assembly (UNGA) from 2015 to 2023, 154 resolutions against Israel were passed and vetoed by the USA, which is an average of 19 per year and 1.5 per month. America preached world Human Rights, and it fully backed the worst human rights violations by Israel. America also preached free trade and opposed protectionism, but now it is the worst enemy of free trade and favors protectionism.

How Trump’s coming into power is viewed by its allies can be imagined that even before the tariffs were announced, multiple European countries, Canada, and China issued travel updates warning their citizens about potentially being detained at the US border. Canadians have been especially vocal about canceling their trips to the US in protest of Trump’s policies, including tariffs. But they’re not alone: All foreign arrivals into major US airports tumbled 20% late last month compared with the same period a year ago, according to   Axios Analysis — a fact that should alarm the more than US$ 2,000 billion US travel and tourism industry. China has halted all deliveries of aircraft and parts made by Boeing, that quintessentially American manufacturer that directly or indirectly supports 1,600,000 US jobs. Now, except for China, for other countries, Trump had announced a 90-day cease-fire, but uncertainty still looms.

The U.S. tariffs are also expected to hit less-developed nations, with Mexico’s economy now expected to shrink this year by 0.3%, down from a previous projection of 1.4% growth. South Africa is forecast to grow just 1% this year, down from a 1.5% projection in January.

The IMF warned that “global financial stability risks have increased significantly,’’ along with the deteriorating economic outlook. The fund noted that some stock and bond prices remained high despite the recent market rout triggered by Trump’s tariffs, which means they are vulnerable to further drops.

US Debt Position as on 23 April 2025

Total National Debt US$ 36,106 billion

US Budget Deficit US$ 2,006 billion

US Federal Debt to GDP Ratio

Interest on debt: US$ 1,019 billion

Debt per Citizen: US$ 107,433

Debt per taxpayer: US$ 323,049

US Federal Tax Revenue: US$ 5,100 billion

US Total Debt: US$ 103,322 billion

US Total Interest paid: US$ 5,410 billion

US Economy at a Glance

Population: 341.55 million ( 2025)

GDP

Nominal US$ billion  : 30,337 ( 2025)

PPP US$ billion                     : 30,337 ( 2025)

GDP per Capita

Nominal US$             : 89,678

PPP US$                    : 89,678

GDP by Sector

Population below the poverty line: 11.1 ( 2023)

Unemployed Youth: 13.7 % (March 2025)

Exports US$ billion: 3,191 billion ( 2024)

Export Goods

Imports US$ Billion : 4,100 (2024)

Import Goods

Main Import Partners